2026/02/20 USD/JPY Trade Strategy
Today's USD/JPY call: Buy.
The 4-hour and lower timeframes are rising, but on the daily chart the price range is narrowing and it looks like it may be turning into a consolidation.
In the near term it’s a range, so it’s a matter of buying from the bottom or buying after a breakout.
I don’t really feel like trading aggressively here.
I think it’s fine to wait and see a bit longer and get in once things become clearer.
Review
It was Scenario B.
The long entry came as price touched Line B, printed a long lower wick and moved up.
It didn’t reach the target; I took profit as it got stopped at the next pink line below and started to drop. 40 pips
You could also buy around the blue circle, but the stop-loss level ends up farther away.
Considering the case where price fails to break the range high, the expectancy is lower, so in this kind of range it’s often better to wait for a bounce near the range low.
Sometimes price rises without coming down to the low, and sometimes, like this time, the entry level ends up not being much different, but it’s basically a matter of choosing whether to avoid the risk of losing or the risk of missing the move.
This article reflects the author's personal view of the market. It does not recommend any specific trade; all investment decisions are your own responsibility.
